Can carbon tax designs gain public support?: Evidence from a CVM-DCE study in South Korea

This study evaluates public acceptance for a carbon tax in South Korea by estimating the willingness to pay (WTP) across different tax scenarios. Data were collected in July 2022 from a representative sample of 823 South Korean households, and analyzed using a hybrid methodology combining the contingent valuation method (CVM) and a discrete choice experiment (DCE). The results indicate an average monthly WTP of approximately KRW 4608 (USD 3.52) per household for a baseline carbon tax. While demographic factors show no significant effect on mean WTP, support increases with greater awareness of energy taxes and the government's net-zero policy. Furthermore, WTP varies significantly by tax type and revenue recycling, with a preference for indirect taxes and revenue earmarked for the low-carbon industry. The estimated annual benefits of meeting national net-zero goals range from KRW 57,929 to KRW 94,977 (USD 44.31-72.65) per ton of carbon reduced. These findings offer practical insights for designing publicly acceptable carbon pricing mechanisms tailored to the South Korean context.